Money Talk: CFPB Seeks Public Comment On Credit Card Market

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CFPB SEEKS PUBLIC COMMENT ON CREDIT CARD MARKET
The Consumer Financial Protection Bureau (CFPB) announced recently that it is seeking public comment on how the credit card market is functioning and the impact of credit card protections on consumers and issuers. The public inquiry will focus on issues including credit card terms, the use of consumer disclosures, credit card debt collection practices, and rewards programs, among others.

“The (CFPB) is seeking to further understand how the credit card market is working in practice and how credit card protections affect consumers and credit card issuers,” said CFPB Director Richard Cordray. “As we undertake this review, the Bureau wants to ensure it understands the information that consumers, industry, advocates, and other stakeholders believe is most relevant.”

In 2009, Congress passed the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act, with the goal of bringing fairness and transparency to the credit card market. The CARD Act requires that the CFPB conduct a review of the consumer credit market every two years. As part of that review, the Bureau is seeking public comment from consumers, credit card issuers, industry analysts, consumer advocates, and others on the state of the credit card market.

The CFPB review will culminate in a public report to Congress on the state of the consumer credit card market. The Bureau will use the data gathered to help inform future policy decisions on the topic. To learn more, go here.

MALVERN NATIONAL BANK ADDS 3 TO BOARD
Fast-growing Malvern National Bank has added three new members to the bank’s board of directors. Baker Kurrus, Rusty Mathis, and Dr. Kent Westbrook were named to the board.

Kurrus, an attorney, has worked for companies owned by the Rockefeller family that span banking, auto, farming and real estate. Kurris is a former member of the Little Rock School Board.

Mathis is the general manager of the Mid-South division of food distributor Ben E. Keith Co. In addition to growing the business, Mathis has supported Ben E. Keith sponsoring events including Pulaski Technical College, Thea Foundation, and Our House.

Westbrook is a cancer specialist at the University of Arkansas for Medical Sciences (UAMS). He is a distinguished professor of surgery in oncology and is founder and past director of the Arkansas Cancer Research Center at UAMS.

STEELE RETIRING FROM CREWS
After more than 30 years in bond financing, Charles “Chuck” Steele is retiring from Crews & Associates Inc. at the end of March. Steele has been an investment banker since 1981, beginning his career serving West Virginia issuers.

He joined Crews in 1996 to manage its Capital Markets Group. Since 2010, Steele has directed business development and special project assigned by the firm’s CEO. Read more here.

Steele has served as underwriter and financial adviser to a variety of issuers in several states. In the course of his financing career, he has participated in bond and note financing programs secured by sources that include bond insurance, investment grade ratings and letters of credit.

“Chuck’s service to this firm and the clients we serve will be greatly missed,” said Rush Harding III, CEO of Crews & Associates. “We are grateful for the wealth of knowledge and expertise he shared throughout his nearly 20 years with Crews. We wish him well as he begins this next season of life.”

Little Rock-based Crews & Associates Inc. a full-service investment banking firm, is a wholly-owned subsidiary of First Security Bancorp, with branch offices in Arkansas, Alabama, Louisiana, Maryland, Mississippi, Ohio, Texas and West Virginia.

ARVEST BANK SEES RECORD NUMBERS OF SBA LOANS IN 2014
Bentonville-based Arvest Bank said it made a record number of Small Business Administration loans in 2014.

The bank made 145 new SBA loans, which was 22% higher than their previous record of 119, recorded in 2012. The new loans in 2014 represented more than $32 million in loan volume.

“Small business growth and lending is vital for our economy both nationally and at the local level. We’re seeing even more opportunities this year to help small business owners and administrators gain access to funds they need to further their businesses and shape our communities,” said Marcus Guinn, EVP and loan manager at Arvest’s central Arkansas practice. 

ONE-ON-ONE WITH CITIZENS BANK CEO PHIL BALDWIN
Guest contributor Scott McClymonds, founder of Fayetteville-based strategic consulting firm CEO Velocity, recently interviewed Phil Baldwin, CEO of Batesville-based Citizens Bank. Their Q&A centered on technology’s impact on banking.

Scott: What are the greatest opportunities and challenges you see for your bank and the industry in 2015?

Phil: Technology and demographics are driving changes in banks. Technology is so much more advanced than I ever thought possible, but to my kids it’s a common, ordinary part of life. The American Bankers Association says 60% of bank customers haven’t been to the bank in 5 years, (and) millennials don’t even know branches.

Technology and demographics are rapidly changing what a bank needs to do. It has really opened up the payment systems. Wal-Mart can serve many of these people better and cheaper without being a bank. Down the road in 50 years or so, will we even need banks?

Read more of Baldwin’s interview at this link.

MICROLENDER ACCION CHANGES NAME TO LIFTFUND
In an effort to more aptly describe its services, microlender Accion has changed its name to LiftFund. The 20-year old non-profit, which located in Arkansas in 2011, said the name is more reflective of the group’s mission and the clients it helps. LiftFund makes smaller loans to startup and small businesses who may not have a healthy enough credit score to qualify for traditional bank loans.